The Wall Street Journal writes "Higher Deposit Rates May Finally Be Coming to Your Bank Account." The article, subtitled, "With Fed poised to raise interest rates a sixth time, savers so far have seen few rewards," tells us, "Is the sixth time the charm? The Federal Reserve has raised short-term rates five times since late 2015, but banks largely stood pat on deposit rates for rank-and-file customers. Now, with the Fed expected to lift rates again this week, there are signs this could change. The average rate on a one-year certificate of deposit, or CD, rose to 0.49% last week, according to Bankrate.com, a personal-finance website. While that's peanuts by historical standards, it is the highest in more than seven years, and the march upward has quickened after the most recent Fed moves. Banks over the past year have already raised the interest paid on deposits held by businesses and affluent individuals who demand it. But their tentative foray into higher CD rates is more about trying to get ahead of average customers' demands. It's a tricky calculation. Banks don't want to pay more than they have to, but they also don't want to keep deposit rates so low that customers eventually leave." The Journal quotes, Gerard Cassidy of RBC Capital Markets, "This is the biggest story that investors and bankers are going to talk about for the next two years ... after a period of eight or nine years of not even worrying about it."

Email This Article




Use a comma or a semicolon to separate

captcha image

Daily Link Archive

2025 2024 2023
January December December
November November
October October
September September
August August
July July
June June
May May
April April
March March
February February
January January
2022 2021 2020
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2019 2018 2017
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2016 2015 2014
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2013 2012 2011
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2010 2009 2008
December December December
November November November
October October October
September September September
August August August
July July July
June June June
May May May
April April April
March March March
February February February
January January January
2007 2006
December December
November November
October October
September September
August
July
June
May
April
March
February
January